Peru Economic Activity Slows Further in June

Peru’s economy grew by 3.23% year-on-year in August 2026, slowing from 3.56% growth in July and falling short of market expectations of 3.4%. Fishing activity continued to contract, although at a slower pace of 17.33%, as warmer sea surface temperatures associated with the El Niño phenomenon pushed fish into deeper waters. Mining and hydrocarbons also declined, contracting by 5.53%. In contrast, all other sectors recorded growth, led by construction, which surged by 10.34%. Among the sectors making notable contributions to overall economic growth were manufacturing (4.18%), commerce (6.89%), agriculture (3.37%), transport (2.56%), utilities (6.61%), business services (3.91%), and public administration and defense (3.06%). The economy grew by 3.14% year-on-year in the first eight months of 2026. Over the twelve months through August, economic activity increased by 3.31% compared with the corresponding period a year earlier.

Peru’s economy expanded 3.56% year-on-year in July 2026, accelerating from a 1.75% increase in June and marking the strongest growth since April. Commerce grew 6.79%, driven by a 4.22% increase in wholesale trade, a 28.77% surge in automotive trade, and a 6.02% rise in retail trade. Other services, which include real estate and personal services, expanded 5.08%. Construction grew 9.85%, supported by a 10.17% increase in domestic cement consumption and a 9.51% rise in the physical progress of construction works. Business services (4.24%), financial services (3.13%), public administration and defense (3.46%), transportation (2.86%), utilities (7.30%), accommodation and restaurants (3.48%), mining and hydrocarbons (0.24%), and telecommunications (0.30%) also expanded. In contrast, manufacturing (-1.81%), fishing (-27.44%), and agriculture (-1.23%) contracted.

Peru’s economy expanded 1.75% year-on-year in June 2026, easing slightly from 1.8% in May and marking the weakest growth since November 2025. Fishing recorded the steepest contraction, plunging 51.9% after a 73.1% decline in the previous month, as warmer surface waters linked to the El Niño phenomenon pushed fish into deeper waters. In turn, agriculture also weakened, falling 8.1% after a 0.1% increase. Growth in mining and hydrocarbons reversed to a 2.2% contraction from a 2.6% gain, while the decline in manufacturing narrowed to 6.2% from 10.7%. Offsetting some of the weakness, growth accelerated in commerce (7.8% vs 6.9%), construction (9% vs 4.7%) and utilities (6.8% vs 5.2%). In the first half of 2026, the economy expanded 3.05%, while growth over the 12 months through June reached 3.33%.